Originally Posted by
Keyser.Soze
Was wondering if the following strategy would work as an alternative to Venmo/Paypal'ing a friend:
- Create fake eCommerce website under a sole proprietorship with it's own EIN and DBA name (not your first and last name).
- Register the business address via a local UPS business mailbox so that it isn't the same address as your home address.
- Open a business checking account and order physical checks.
- Purchase one or several products/services on this created website with the card you are trying to hit the MSR on.
- The sale amount less 3% Stripe processing fee is deposited from Stripe and into your business checking account.
- Mark the order as "refunded" on the backend of the website for record keeping and send a refund to yourself via alternative payment method (physical check) and not via Stripe. This would effectively wash the tax obligation of the "sale" and give you the funds (97% of it) to pay off the charge on the card you are MS'ing.
Thought this could be a way to be Uncle Sam compliant but not be as an obvious MS attempt as Venmo and Paypal to major card issuers.
Opening a business bank account is not always easy.
Unlike personal where you walk in (or even go online), complete the process in < 30mins and leave with a free gift or something, banks often take a much harder look at business accounts.
You may be asked all sorts of questions as to type of business, all sorts of supporting documents requested, and so forth. This only to be told "no" we don't want your business.
Another thing business bank accounts often require relatively high minimum daily balances. This and or can be rather heavy on fees.
You might be able to find a "free" business checking account online or locally, but read the fine print.
https://www.fundera.com/blog/free-business-checking